Contrasting signals from the luxury goods front
CEO’s from companies being engaged in the luxury goods sector state decreasing business whereas a new study by Ledbury Research, London (GB) reveals a progressively better climate among wealthy customers to opt for buying luxury goods
The newest global report on the study series Luxury Market Insights by Ledbury Research reveals regional differences in view to consumer confidence of well of people. In the USA with the Presidential and other elections ahead the consumer confidence of wealthy people is decreasing whereas in Europe there are signs of recovery. The same takes place in Asia and despite of the slowdown in China.
The consumer confidence in Asia decreased in Asia during 2011 and for the first three months of 2012 because of the fear of an economic downturn in China and affected also Hong Kong and Singapore, both depending heavily on expenses from tourists of mainland China. Nicola Ko, analyst of the luxury segment at Ledbury Research is convinced that the pessimism of well off consumers has come to an end as recent indicators prove a mild recovery between March and June of 2012. However, the CEO Outlook Indicator of the study does not take notice of this fact and tends downwards in their expectations majorly because of the pains in Europe where sales decreased in the single digit area. The growth rate in Asia has settled around 19 % thus far away from former growth rates. The indicator is now six percent below the one from March and signals a back draw of 19 % against the result of six months ago.